Just like every other type of economy, the circular economy is certainly very important and at times essential for any kind of business development. And just like every other type of economy, this one also has certain fundamentals that define it, as well as the way it works and the results it can bring, always depending on the situation.
The fundamentals of this economy concept are very specific and for anyone who wants to get more into it, for professional reasons, it is important for them to know exactly how everything works.
The easiest way to look at the circular economy in order to understand it is to look at the end state that we want to achieve. And this entire thing is built on the what circular economy is all about. In particular, the circular economy is all about activities that can help build and rebuild overall system health. With the circular economy, the purpose is to create the type of economy that works effectively at all different scales and for every level for either small, medium or large companies organizations and of course individuals.
After understanding what the circular economy is about, it is time to break down the fundamentals. Now those fundamentals can be visualized as pillars. The 7 pillars that hold the circular economy steady and help achieve the needed results. Let us list those seven pillars for you and try to give you an idea about what each pillar does.
- Materials are incorporated into the economy in such a way that they can be cycled at a continuous high value
- All energy is based on renewable sources.
- Biodiversity is structurally supported and enhanced through all human activities
- Human society and culture are preserved
- The health and wellbeing of humans and other species are structurally supported
- Human activities generate value in measures beyond just financial
- Water is extracted at a sustainable rate and resource recovery is maximized
Each one of those pillars works separately and at the same time in coordination with the rest in order to always achieve the results needed. Circular economy bases its results to those pillars. Anyone who wants to become involved in the circular economy needs to understand the importance of these fundamentals and follow them to the letter.
For more information on the circular economy and how it works, you can check out more informational articles on the website of the Institute of Entrepreneurship Development. If you want to become an active member of the society, if you want your company to add to the environment and help improve current predicaments then the circular economy is something you really want to look into. It is after all considered to be the economy of the future.